Members of two of the biggest public sector unions, Siptu and Fórsa, have voted overwhelmingly in favour of industrial action in a dispute over a new pay agreement with the Government. The previous deal ran out at the end of June and the unions complain that the Coalition has not engaged in serious negotiations on a successor. There is no immediate prospect of industrial action, but the unions see the votes as a warning shot to the Government and insist that they will now continue discussions on what measures might be taken if what they see as real talking does not get underway.
The decision to seek a mandate from their members reflects a number of issues. The most obvious is the pressure caused by higher prices, particularly on lower-paid public servants. Any deal done with the Government will inevitably be backdated, but the unions ask why their members should have to wait.
Other groups have also been seen to win concessions over the past couple of years and the trade unions will be under internal pressure to show that they can do likewise. The fuel protests resulted in a second round of excise reductions, recently extended. The unions will have noted that causing disruption brought results. And last year the hospitality lobby won a VAT cut, which came at the expense of indexing income tax bands and credits for this year.
Part of the delay also relates to some jockeying for position, with the Government seeking commitments for reform, while the unions want to see money put on the table first. The large size of the budget surplus will embolden them in this demand.
The Government may want to push the real talking under after the budget, but –either way– both sides need to get around the table sooner rather than later. Trade union members need to see their incomes adjusted for inflation. And the Government is right to build in demands for cooperation with public sector reform. Both sides know that, at some stage, a deal has to be done. They need to get on with it.